Money saved but not sure where to invest it—that is the problem plaguing young investors, finds a survey conducted by Dinero Neo Bank. Of the 500 participants aged 19-30 years, more than half (64 per cent) said they were unsure of where to invest.
The main objective of the survey was to understand the thought process of investors in this age group when they set financial objectives for themselves when saving money.
Of the 500 participants, more than 51 per cent respondents said they save and set aside money from monthly income but are unable to act on their investment plans because they lack the required knowledge. Complicated financial terms confuse them and they feel incompetent to make a decision.
Saving without a goal is another hurdle, the survey found. More than one-third of the respondents (33 per cent) said they were inclined towards saving any amount, without having a clear goal in mind. However, 40 per cent of those who save said they do so for short-term expenses.
Lack of required knowledge is further compounded by not being able to find a trustworthy financial asset that offers low-risk investment options. More than one-third respondents, 35 per cent, said they had trouble finding a suitable asset.
When it came to choice, cryptocurrencies lagged mutual funds in popularity. Interestingly, 59 per cent of the participants stated that they would rather invest in mutual funds rather than the trending cryptocurrencies.
Almost half (45 per cent) admitted to using their bank statements as a primary method for keeping track of their expenditure, rather than tracking the spending done using the numerous UPI apps.
There has been an increase in digitalisation, but human interaction is still what young investors are accustomed to when it comes to seeking counsel or assistance in investing.
Overall, the survey results showed that those who have resolved to gain financial control and make better judgments about their money are more concerned than ever about sticking to those resolutions in 2022.
Kashyap Mahavadi, founder and CEO of Dinero Neo Bank, stated in a company press release, “We conducted this survey with the aim to understand the pain points of young Indians and bridge the gap between savings and investments. We want to be able to help them or be their sensei (teacher), providing the right platform to achieve financial stability and freedom to make better financial decisions.”